Foodindustryexecutive iconFoodindustryexecutiveSep 17, 2026 ~8 min source read

Private Label Hits 24% of Food & Beverage Dollars — Which SKUs Are at Risk?

Retailers are shrinking assortments while private label expands. Volume is flat and unit share for store brands is at record highs. Suppliers need a practical playbook to identify which SKUs will survive the next category review.

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Useful takeaways from this story.

Suppliers should rank SKUs by velocity per facing and contribution margin per facing and proactively volunteer low-efficiency items before buyers decide.

The useful part

Register for an account your email your username A password will be e-mailed to you. Password recovery Recover your password your email A password will be e-mailed to you. The majority of shoppers say they would keep buying store brands even if grocery prices decreased.

How it works

  • If you have three similar items in one category and all three sell reasonably well, the buyer may decide that two are enough.
  • If you show up to that review without a recommendation, and they'll pick the two that stay.
  • Proactively offer two or three items to retire alongside supporting data and a specific trade request for shelf space.
  • Items shoppers buy once and never again are failures in her data, even when the launch week seemed strong.
  • So private label is creating manufacturing work while also taking branded shelf space.

What to take from it

US private label CPG sales hit $330 billion, with a 24% value share of food and beverage aisles. Because retailers control shelf placement and pricing, contract terms determine your risk. Operating strictly on purchase orders without volume guarantees or ingredient cost pass-throughs forces you to bear all market risks.

Example or evidence

  • July 27, 2026 [Report] How to Build a Better Training Program & Why July 13, 2026 Aug 24 Sep 30 Sep 30 Oct 5 Oct 6 View Calendar Industry Insights.
  • On August 21, BJ's Wholesale Club told investors it will cut about 20% of the items it carries.
  • Legacy clubs typically have roughly 7,500 SKUs, and the company plans to bring it down to between 6,000 and 6,500 over the next couple of years.
  • So while one is subtracting, the other is adding new private label items that will need a manufacturer.

Details worth keeping

24% of Food and Beverage Dollars Now Go to Private Label. Get help Create an account Create an account Welcome! Sustainability Associations Trade Shows Media Kit Download Our Media Kit Submit an Article for Publication on Food Industry Executive Supplier Catalog View Products List Your Products Home Business Operations 24% of Food and Beverage Dollars Now Go to Private Label.

Related coverage

  • Wcpo: A new SPINS study has found that private label sales climbed to more than $251 billion this year. Researchers said Gen Z and Millennials drove 81% of that growth.
  • Fooddive: Only 14% of brands saw growth in purchasing intent among consumers, with legacy players securing the biggest boost, according to Morning Consult.
  • Fooddive: The retailer's own brands outperformed national brands during the second quarter as it saw robust interest in "anything that is answering a customer's question around value," said CEO Greg Foran.
  • Foodindustryexecutive: Major food leaders are restructuring as Coca-Cola invests $10B in US manufacturing.

More context around this story.

OpenBase LLC: Head of Growth & Operations
Weworkremotely iconWeworkremotelySep 15, 2026

OpenBase LLC: Head of Growth & Operations

Headquarters: US URL: https://openbase.ai/ Head of Growth & Operations — Openbase.ai Full-time | Remote | Reports directly to the Founder About Openbase Openbase.ai is an AI gateway that helps developers and businesses access multiple AI models through one API. We simplify model access, routing, and usage management so

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